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It’s never easy managing finances, but it’s one of the most important things you can ever learn how to do. It’s critical to manage your money wisely so you don’t end up with massive amounts of debt. Here are 4 personal finance tactics that can keep you out of debt.

Don’t Spend Money Before You Get It

It’s easy to look ahead to a large incoming payment, whether it’s a tax return or a bonus check, and want to spend that money on something you need now.

Don’t do it! Spending money before you actually get it creates a perpetual cycle of borrowing from future income. Do yourself a favor and don’t spend money before it’s actually in your bank account.

Know Your Money

It’s critical that you know your own numbers, like how much money you make per month after taxes, how much you have to spend on necessities, or how much you have at any given time to spend on luxuries.

Small purchases add up quickly, and it’s easy to overspend if you’re not keeping an eye on your money regularly. Knowing your money will ensure that you never overspend. Establish a budget and put yourself on the path to financial success.

Minimize Monthly Service Contracts

It’s so tempting to sign up for monthly service contracts, especially for things that make our lives easier, like lawn care or having fresh food delivered to your door.

Monthly service contracts can be dangerous because the overall cost can add up faster than you think, and you end up spending way more than something is worth. Before you sign up for a contract, add up the monthly payments for a year, and see if it’s still worth it to you.

Having too many monthly service contracts minimizes your free cash each month and makes it more tempting to buy on credit.

Never Purchase on Credit

We’ve all bought that one thing that we just had to have, but we technically couldn’t afford. After we get it home, the newness wears off, but the credit card bills keep coming.

It’s much harder to make payments on something you already own than it is to save up for something you really want, not to mention the wasted money spent on interest fees.

Don’t buy anything unless you have the cash already sitting in the bank. This doesn’t mean you can’t use credit cards. Make your purchase on your credit card so you earn rewards points, but immediately set that money aside so you’re able to pay the credit card statement when it comes.

If you find yourself already in debt, work with a debt consolidation company to get out of debt, and then only purchase things when you have the cash in the bank.

Don’t be intimidated by your finances. Be smart with your money and do your best to get the most out of every dollar. Debt adds stress to your life, so do your best to live within your means and enjoy the peace of mind that comes with it.